TRMB finds buyers at key support level
Trimble Inc. (TRMB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TRMB finished the week 4.54% higher at 45.36 after gaining $0.46 (1.02%) today on high volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 45.36 marks the highest recorded closing price since July 5, 2019. Closing above Thursday's high at 44.99, the share confirmed its breakout through the prior session high after trading up to $0.83 above it intraday.
Daily Candlestick Chart (TRMB as at Feb 14, 2020):
Friday's trading range has been $1.45 (3.25%), that's above the last trading month's daily average range of $0.96. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRMB.
After trading down to 44.37 earlier during the day, Trimble bounced off the key technical support level at 44.51 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 30th, TRMB actually lost -2.10% on the following trading day.
Crossing above the upper Bollinger Band for the first time since January 21st, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 43.98 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 46.25 is within reach and we could see further upside momentum should the stock manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Trimble. Out of 390 times, TRMB closed higher 58.21% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.13% with an average market move of 1.00%.